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In the short run, MFDI and SFDI do not significantly affect economic growth.
We found that in the long run MFDI and SFDI significantly affect economic growth.
However, the decrease of a given pathogenicity index (as mFDI, parasite intensity,...) may result from different phenomenon: (1) emigration of parasitized animal, or recruitment, or immigration of unparasitized animals.
The variance decomposition results indicate that in all cases the contribution of TRADE and MFDI, especially the former, to forecast error variances is relatively substantial, although in the case of the manufacturing share of output the contributions are not statistically significant at high levels.
Regarding the dependent variable, we used the gross FDI inflows received by the Spanish economy, according to balance of payments figures, in real terms.(10) In addition, we have analyzed manufacturing and non-manufacturing FDI, and that coming from the EC and the US, also in real terms (denoted by MFDI, NFDI, EFDI and USFDI, respectively).
FDI, MFDI, NFDI, EFDI and USFDI are, respectively, the total gross FDI inflows received by the Spanish economy, those directed to manufacturing and non-manufacturing activities, and those coming from the EC and the US, expressed in real terms using the GDP deflator.
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